Enterprise Products Partners' Q3 revenue misses on reduced LPG fees

Reuters
Oct 30
Enterprise Products Partners' Q3 revenue misses on reduced LPG fees

Overview

  • Enterprise Q3 revenue and adjusted EBITDA miss analyst expectations

  • Net income for Q3 decreased compared to the same period last year

  • Company increases buyback authorization to $5 bln, indicating focus on capital return

Outlook

  • Enterprise expects organic growth capital investments of $4.5 bln in 2025

  • Company anticipates sustaining capital expenditures of $525 mln in 2025

  • Enterprise foresees an inflection point in free cash flow in 2026

Result Drivers

  • VOLUME GROWTH - Record natural gas processing and pipeline volumes driven by Permian Basin production, per co-CEO Jim Teague

  • MARGIN PRESSURE - Lower sales and processing margins, reduced LPG fees, and maintenance downtime affected Q3 results

  • CONSTRUCTION DELAY - Three-month delay in NGL fractionator construction impacted Q3 financial results

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$12.02 bln

$14.07 bln (5 Analysts)

Q3 EPS

Miss

$0.61

$0.69 (14 Analysts)

Q3 Net Income

$1.35 bln

Q3 Adjusted EBITDA

Miss

$2.40 bln

$2.53 bln (13 Analysts)

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the oil & gas transportation services peer group is "buy"

  • Wall Street's median 12-month price target for Enterprise Products Partners LP is $35.00, about 11.1% above its October 29 closing price of $31.12

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw3hb0HPa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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